2015 (8) TMI 444

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....of MMF (P) Dyed and Printed fabrics. On 04.11.2003, the officers of DGCEI, Vadodara visited the factory premises of the Assessee and conducted preventive checks of stock and registers. Shri Ramkishor M. Bindal, Partner of Assessee, in his statement admitted that they have illicitly cleared the MMF (P) finished printed fabrics admeasuring 5,57,910 L.Mtrs. to the merchant manufacturers (shop keepers) without issuing any Central Excise invoices or any duty paying documents and without entering in to the daily stock register and payment of Central Excise duty. The appellant debited the duty amount of Rs. 12,17,056/- by RG-23A Part-II entry Srl. No. 769 dated 05.11.2003. A show cause notice dated 05.7.2007 was issued proposing demand of duty of ....

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....ements and no enquiry was conducted. He submits that the Partner of the Assessee retracted his statement in the reply to show cause notice. He further submits that the imposition of penalty on the merchant manufacturers (shop keepers) is not sustainable without proper investigation and enquiry from them. He submits that there is no evidence that the shop keepers have received these fabrics from the Assessee. He submits that the shortage was detected during the stock verification and there is no material to indicate the clandestine removal and therefore Section 11AC will not be attracted as the Assessee paid the duty on the detection of shortage. 5. On the other hand, learned Authorised Representative for the Revenue reiterates the findin....

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....'; that he looked after all the day to day activities of the 'Unit' including the work related to despatch and Central Excise matters; that he agreed with the facts and figures of the Panchnama dated 04/05.11.2003 drawn at the 'Unit'.; that on being asked regarding the shortage of 6,19,900.25L. Mtrs. Of Man Made Grey fabrics, noticed during the physical verification of stock, he stated that the Grey fabrics admeasuring 6,19,900.25 L.Mtrs. was processed in the 'Unit' and resultant 5,57,910.00 L.Mtrs. of finished printed gabrics valued at Rs. 1,21,70,569.00, was illicitly cleared to the concerned merchant manufacturers, without issuing Central Excise invoices or any other duty paying documents, without payment of Central Excise duty and witho....